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IAM Reward Manager in use

Case File - Anthony Nolan Bone Marrow Trust   

Late in 1994, the Anthony Nolan Bone Marrow Trust (AMBMT) decided to undertake a full review of the reward system Many of the current salaries paid to staff were out of line with market rates and there was no system in place that would take the Trust salaries forward, it having recently left the NHS system. 

It was proposed that a full review of all positions should be carried out using Job Evaluation in order to audit the current situation. A salary system would then be built and maintained. External consultants would be used to assist in the Job Evaluation process and to provide specialist knowledge.  

This proposal was accepted by the Trustees in October 1994, started on the 2nd November and presented to the Board on 18th January, 1995 - a period of 10 weeks from start to finish.

 The Objectives were:

 ‘To identify current and continuing elements of importance in remuneration so that a structure of reward may be established that will enable the Trust to recruit, retain and motivate suitable employees for the pursuit of organisational objectives’

 The structure was to be flexible and simple, based on a discriminating and purposeful policy of payment for performance.

 The tool chosen was the IAM’s computerised ‘Reward Manager’ software as it met the following ‘essential’ criteria: 

1.        That employees should have an active part in the process. 

2.         The System was fully computerised saving time and minimising the amount of paperwork required as manpower resources were limited. 

3.         The System facilitated the design of a salary and grade matrix. 

4.         The System avoided the need for lengthy, time-consuming Job Evaluation Panels, which take up a lot of costly management time. 

5.         The System would be used and owned by the Trust available on an on-going basis and for future reviews.

A programme was then drawn up; the main elements of which were as follows:

  • Draw up Critical Path objectives.
  • Train ANBMT managers and System operators.
  • Identify Jobs / Job Element not covered by the ‘Reward Manager’ Base System.
  • Add to the Base by inputting Job Elements from ANBMT job descriptions.
  • Evaluate (Grade) new Job Elements using the System matrix.
  • Brief / train managers on ‘Reward Management’ considerations.
  • Brief staff representatives on System approach and timescale.
  • Input and download information into the System from manual records and computerised databases i.e. Personnel & Payroll.
  • Prepare / print out Job Evaluation Questionnaires for completion by staff.
  • Consolidate and evaluate salary survey data gathered by Personnel Manager for downloading onto System database.
  • Enter data into computer System from completed / agreed Job Questionnaires.
  • Force Job Grades using the Systems built-in algorithm.
  • Produce Salary Grades for each employee against the position evaluated.
  • Use the System to Analyse Current Pay (called off from payroll) in terms of ‘max’, ‘min’, ‘mid-point’, ‘upper and lower quartile’, etc.
  • Link individuals to newly evaluated jobs / job grades and Compare Existing Pay.
  • Use the System to identify Percentage Salary Drift and Potential Savings.
  • Draw-up a Reward Management Policy and Strategy.
  • Decide on how to treat anomalies.
  • Cost the implications of the new Structure on the System.
  • Present the results to the Board of Trustees.
  • Have the System generate letters to all employees.

The Job Information stage was very substantially completed within 3 (three) weeks, and an initial ‘preview sample’ (benchmark) of jobs was done and evaluated before the process of job evaluation began in earnest. This enabled the Project Team to put sown some markers for the broad range of the evaluation.

In particular, the team formed a view of the evaluations of the senior managers and the ‘key posts’, thus, in a sense, defining the ‘parameters’ of the job evaluation exercise.

A ‘benchmark’ sample of jobs were evaluated to provide an extremely solid basis for ‘slotting-on’ the remainder of the population under review. (Alternatively, all jobs could have been easily evaluated on the same basis).

Following ‘benchmarking’, the team, proceeded to ‘slot’ the remaining jobs into the evaluations, taking account of the framework established.

External salary survey data was then used by the ‘Reward Manager’ System and to project a ‘suggested’ Salary Grade Scale for the ANBMT related to their location and Industrial Classification size and type.

CONCLUSIONS

By means of this exercise, The Trust identified a percentage salary drift, as was anticipated, and instituted proceedings to make savings in the future. Note: No action was taken with staff who were identified as being overpaid, apart from ‘red  - circling’.

Finally a new salary Structure was drawn up and staff placed upon that structure depending upon their new band and grade, and key performance factors identified to be used in conjunction with the ‘Reward Manager’ System as the basis for future performance and incremental pay. 

Case File - Teachers Assurance
Description of the IAM Reward Manager
Managing Rewards an essential management process.